Digital credit sector: Microfinance regulator meets lenders on guidelines
The demand for digital financial services has experienced a substantial upswing in recent years. This heightened demand is accompanied by an increase in non-performing loans. Among those most susceptible to these dynamics are consumers. Addressing these concerns, the UMRA has introduced a preliminary set of guidelines designed for digital money lenders. Notably, these guidelines caution lenders against the improper utilization of consumer information, such as phone numbers, and emphasize the importance of transparent disclosure of potential hidden charges. Additionally, the guidelines underscore the significance of preventing wrongful confiscation of property, among other critical considerations.
